Question

1098-t

Forum|Forum|1 year ago
February 23, 2025
1 reply
0 views

Hello, I'm having a bit of difficulty understanding something about the 1098-t. Everywhere I have checked has said that I am not required to file it unless box 5 exceeds box 1. My 1098-t has box 5 as 7000 dollars higher than box 1. I just want to know if I am required to file the 1098-t at all.

S

SabrinaD2

You will likely need to file form 1098-T on your tax return.

Here's why:

Schools send Form 1098-T to the IRS to report tuition payments and related financial transactions. Including the 1098-T in your return helps avoid discrepancies and potential issues with your tax filing.
Since Box 5 (scholarships and grants) on your form is $7,000 higher than Box 1 (payments received for qualified tuition and related expenses), the excess amount is generally considered taxable income. So, in your case, the $7,000 difference may need to be reported as income on your tax return.

For more detailed information, you can check out the IRS page on Form 1098-T, scroll to page 4 for instructions, and this TurboTax guide to Form 1098-T.